Market Commentary

American Manufacturing

Factory Orders

Factory orders rose 1% in December after rising 1.3% in November and the manufacturing PMI for December rose to 57.1 from 56.7. There appears to be a strength that will continue as the covid vaccine spreads. With Washington set for another stimulus, whether needed or not, the economic recovery should be very robust as the New Year unfolds.

There might be a slight slowing in economic activity from the short term spike in covid cases, but there will be no new shut down. Everyone is thinking that this spike is short term. It will affect jobs as seen in this morning’s ADP employment report showing a loss of 123,000 in September but that too is temporary.